What might past lawsuits against a loan originator, regarding non-payment of commissions, be used to assess?

Past lawsuits against a loan originator concerning non-payment of commissions may be used to assess the applicant's competence. This is because such legal issues could indicate a lack of understanding or adherence to industry standards and practices concerning financial transactions and contractual obligations. If a loan originator has faced multiple lawsuits over commission disputes, it can suggest that they may not be effectively managing their business relationships, understanding the contractual terms, or executing their responsibilities properly, which are integral aspects of being competent in the field.

Competence in the mortgage and lending industry involves a combination of knowledge, skills, and the ability to operate successfully within legal and professional boundaries. Having past legal issues might raise questions about their qualifications and efficacy in executing their role.